What Are The Benefits of Equity Release?
Equity Release market reaches £870 million mark in 2018Equity release enables homeowners aged over 55 to release funds from their home, while staying in it (and still ‘owning’ it). Instead of paying the money back as one does with a normal mortgage, the money is repaid upon the selling of the property after the owners pass away. As such, equity release market has hit a record £870 million in the first quarter of 2018. To put this figure into perspective, that is 120% more than the £394 million registered in the first three months of 2016.
The figures, from the Equity Release Council, reveal that the over-55s unlocked nearly £10m of housing wealth every day between January and March this year.
The boom naturally has been met with an increase in the number of equity release products available to consumers. In January 2016 for example, there were 69. One year later, the options had rose to 86
However, ‘drawdown’ lifetime mortgages remain most popular. These allow homeowners to withdraw small amounts of equity initially, with an extra amount reserved for future use.
Nonetheless, these recent findings by the Equity Release Council confidently suggest that equity release is not going anywhere, anytime soon!
Equity release FAQs
Who is equity release available to?
You can use equity release if you:
- Are aged between 55 and 95
- Live in England or Wales
- Own a property with a value of at least £50,000
Why do people choose equity release?
For a number of reasons, including:
- It is a way to unlock funds without moving from your home
- It can fund a better lifestyle during retirement
- To provide financial assistance to younger relatives, children and grandchildren, who may otherwise be unable to get onto the property ladder
- To help you pay for holidays, a second home, home improvements and so forth
- To pay off debts and other bills or help with the cost of living
I am interested in equity release. What should I do now?
First things first, you should speak to an experienced financial advisor, who can help you make the right decision for you.
The best place to go for information is http://www.equityreleasecouncil.com/
It is very important to weigh up the pros and cons before committing yourself to any financial product.
Who are GWlegal?
GWlegal are a specialist equity release solicitors based in Liverpool.
If you have a legal matter you wish to discuss don’t hesitate to get in touch. You can call us on 0345 373 3737 or firstname.lastname@example.org with your question.
Who are GWlegal? We’re a national firm with local values.